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Monday, October 22, 2012

''The yuan is displacing the dollar as a key currency''

From The Economist

''The greenback has in the past played a dominant role in East Asia. But
if anything, the region is now on a yuan standard. Seven currencies in
the region now follow the yuan, or redback, more closely than the green
(see chart). When the dollar moves by 1%, East Asia’s currencies move in
the same direction by 0.38% on average. When the yuan moves, they shift
by 0.53%.''